CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

A well-functioning market ______

I. has low transactions costs.
II. provides buyers and sellers with timely and accurate information on the volume and prices of past transactions.
III. rapidly adjusts to new information about the fair value of a security.
Correct Answer: I, II and III

Violations of any of these characteristics will lead to higher costs and lesser ability of investors to make quick, intelligent decisions.

User Contributed Comments 3

User Comment
mpapwa22 All three are charecteristics of a well function functioning market.
farhan92 ^sherlock holmes
khalifa92 finally something I can relate to the LOS I read.
You need to log in first to add your comment.